Saudi's Sipchem, Sahara Petrochemicals study potential merger

LONDON (ICIS)--Saudi International Petrochemical Co (Sipchem) and Sahara Petrochemicals have started a joint feasibility study on a potential merger, they said on Tuesday.

The companies will undergo technical, financial, and regulatory studies over the next five months, they said in separate but near-identical statements on the Saudi stock exchange.

“Then those study results will be addressed to the board of directors of both companies and the required governmental entities, along with the general assembly meetings for both companies to proceed further,” Sahara’s statement said.

Any further developments would be announced after this process, the companies said, without giving a potential value for the merger.

Sahara Petrochemicals’ Q1 net profit nearly tripled year on year, partly on higher sales prices and a decline in feedstock cost, while Sipchem’s Q1 net profit fell by 57.5% year on year on the back of plant turnaround activities.